SCOTBEEF owner JW Galloway has moved back into the black after cattle prices returned to normal levels as memories of the horsemeat scandal faded.

The latest accounts for JW Galloway show the group made £4.4 million pre tax profit in the 52 weeks to 1 March after losing £2.9m in the preceding period.

The privately owned company has said it had to absorb a sharp rise in cattle prices as a consequence of the scandal in 2013.

JW Galloway noted retailers did not want to pass the increased costs on to customers.

Scotbeef is thought to be the largest red meat company in Scotland but faces challenges in the UK retail market, which directors describe as very competitive and price sensitive.

In Scotbeef’s accounts for the 52 weeks to 1 March the company says: “After the unprecedented increase in livestock costs in the previous financial year there was a return to more historic and seasonal cost levels.”

The cost reduction powered a big increase in profitability for during a year when group turnover fell slightly, to £308m from £309m in the preceding period.

Export sales remained robust despite economic uncertainty in the European Union area and the strength of the pound against the euro.

JW Galloway says it supplies meat to 20 European countries through its Scotbeef and Vivers Scotlamb operations.

Scotbeef has three sites in the Central Belt.

The company says the plant at its headquarters in Bridge of Allan, Stirlingshire, boasts one of the country's most modern beef slaughter, chilling, and boning facilities. It can process 2,500 cattle per week. Separate facilities can handle 11,000 lambs per week.

Vivers Scotlamb has a plant in Dornock, Dumfries and Galloway, with a slaughter capacity of 15,000 lambs per week.

Owned by the Galloway family, the group employed an average of 964 people in the latest financial year, up from 942 in the preceding period.

The total boardroom paybill fell to £574,000, from £615,000 in the preceding year.

The highest paid director earned £217,000 aggregate emoluments, down from £245,000.